LTA / LTC Exemption — Leave Travel Allowance
Leave Travel Allowance lets you take home part of your salary tax-free when you travel within India. The exemption covers the travel fare — the lower of what your employer pays as LTA and the actual eligible fare — for up to two journeys in a four-year block. It is an old-regime benefit, and from FY 2026-27 the paperwork tightens. The helper below estimates your exemption. Stated under the Income-tax Act, 2025 (Schedule III) and the Act, 1961 (Section 10(5)).
Covers
Travel fare
within India only
How often
2 in 4 years
current block 2022-25
Tax regime
Old regime only
not in the new regime
Section
Schedule III
was 10(5) (Act 1961)
LTA Exemption Estimator
The exemption is the lower of the LTA you receive and the actual eligible travel fare.
Exempt fare (lower of the two)₹0
Taxable part of LTA₹0
Tax saved on the exemption₹0
Enter your LTA and travel fare to estimate the exemption.
Only the travel fare is exempt — not food, hotels or local sightseeing. The exemption is the lower of the LTA received and the actual fare, and applies to two journeys in a four-year block. It is available only in the old regime. Any LTA not backed by actual travel is fully taxable.
How LTA works
LTA (also called Leave Travel Concession) exempts the cost of travelling within India, for you and your family, when you actually take leave and travel. The exemption is capped at the travel fare by the shortest route: economy-class air fare, or AC first-class rail fare, or the equivalent for other modes. Food, accommodation and sightseeing are never covered.
| Point | Rule |
|---|---|
| What is exempt | Travel fare only — lower of LTA received and actual fare |
| How often | Two journeys in a block of four calendar years (current block 2022-2025; next 2026-2029) |
| Who is covered | You, spouse, children, and dependent parents / siblings |
| Mode cap | Economy air, or AC first-class rail, by the shortest route |
| Regime | Old regime only |
What changes from FY 2026-27: the LTA benefit itself is unchanged, but the paperwork tightens. Under the draft Income-tax Rules, 2026, Form 124 replaces Form 12BB, actual travel proof (tickets, boarding passes, payment confirmation) becomes mandatory, and road travel is proposed to be capped at about ₹30 per kilometre. These are draft rules pending notification, so confirm before you file. LTA remains an old-regime benefit.
Old Act 1961 vs new Act 2025
Income-tax Act, 1961
- Exemption: Section 10(5) r/w Rule 2B
- Declared via Form 12BB
- Two journeys in a four-year block
- Applies for FY 2025-26 and earlier
Income-tax Act, 2025
- Exemption: Schedule III
- Form 124 and travel proof mandatory (draft)
- Structure unchanged; still old-regime only
- Applies from Tax Year 2026-27 (1 April 2026)
Section references reflect the Income-tax Act, 2025 in force from 1 April 2026. The exemption structure carries forward from Section 10(5); the documentation changes are proposed under the draft Income-tax Rules, 2026. Confirm the live position on the income-tax portal before filing.
Related tools and guides
All income tax deductions →
HRA exemption calculator →
Standard deduction →
Form 12BB / declaration →
Old vs new regime advisor →
Frequently asked questions
Can I claim LTA in the new tax regime?
No. The LTA exemption is available only in the old regime. Under the new default regime the LTA you receive is fully taxable. To claim it you must opt for the old regime.
How much of my LTA is exempt?
The lower of the LTA your employer pays and the actual travel fare you incurred, by the shortest route in economy air or AC first-class rail. Only the fare is exempt — not food, hotels or sightseeing — and any LTA not backed by genuine travel is fully taxable.
How many times can I claim LTA?
Twice in a block of four calendar years. The current block is 2022 to 2025 and the next is 2026 to 2029. If you use only one journey in a block, one can be carried to the first year of the next block.
What changes for LTA from FY 2026-27?
The benefit is unchanged, but the paperwork tightens under the draft Income-tax Rules, 2026: Form 124 replaces Form 12BB, actual travel proof becomes mandatory, and road travel is proposed to be capped at about ₹30 per kilometre. These are draft and pending notification.
Is international travel covered?
No. LTA covers travel within India only. If your journey includes a foreign leg, only the Indian portion up to the eligible fare can be considered, and in practice overseas travel is not exempt.
This page is a general guide for individual taxpayers and is not tax advice. Eligibility, the four-year block and documentation depend on your specific facts. Section references to the Income-tax Act, 2025 (Schedule III) apply from Tax Year 2026-27 (FY 2026-27); items marked draft are proposed under the Income-tax Rules, 2026 and pending notification. Verify the current position on the income-tax portal or with your advisor before filing.